found motivated homeowner, need HELP!
I have come across a motivated homeowner who is willing to work with us. We live in Florida. To secure the We know nothing about buying preforclosures.We wnat the house to live in. We need step by step help and want to find it fast. Tomorrow we are going to check on liens on the property at the courthouse, verify what he owes to the mortgage company, do a thorough inspection ourselves of the house, and then we thought we should have the owner sign a quit claim and warranty deed. We need help please! Are we headed in the right direction. We just need a place to live and feel this place was exactly right for us, regardless of price. A great deal would be great but overall we just love the property and would pay.
mandevil,
Welcome to TCI!
As an investor, you should never get emotionally attached to a property. But, if you are planning on living in it, then that may be slightly different. Most investors know that they can get properties below market and will not buy retail. Since you don't have that mind set, then I'll give you some advice on what you should do.
You should write up a contract for sale and purchase and give the seller's an offer. If they accept your offer and sign it, then you have it under contract. You want to owners signing a warranty deed. Quit claim deeds are only used when one party is relinquishing their interests in the property. You can have 5 people having equal interest in the property. If you sell it, then you will need all 5 signatures. You don't want that mess.
I highly suggest contacting a real estate attorney who is knowledgable and can also act as your closing agent. You may want to have the attorney review all documents before having the seller sign them. The RE attorney can also be your closing agent and can write up any other paperwork necessary for the closing of the transaction.
You may want to read these articles by Bill Young called Using Financial Judo Series (Part 1 of 2) and Using Financial Judo Series (Part 2 of 2). They will show you how to convince the seller that there is not as much equity in the home as they thought. You can use this strategy when negotiating the price and build instant equity for you. Good luck and let us know if you have any more questions.
Tanya